Term:
Strategic behaviour
Definition:
Strategic behaviour is the general term for actions taken by firms which are intended to influence the market environment in which they compete. Strategic behaviour includes actions to influence rivals to act cooperatively so as to raise joint profits, as well as noncooperative actions to raise the firm's profits at the expense of rivals.
Domain:
Finance
Source:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993